Deutsche Bahn Ag Swot Analysis
SWOT Being such a successful company, Deutsche Bahn has many strengths which have contributed to this success. The main strength Deutsche Bahn has is the diverse services available to their customers. A recognizable name in transportation, Deutsche Bahn continues to grow internationally. However, a major weakness is an overdependence on the Europe, and in particular Germany. With the recent liberalization of railways in Europe, Deutsche Bahn has a major opportunity to exploit in regards to passenger transport expansion.
Currently, the main threat facing Deutsche Bahn’s operations are the transportation providers entering the market, and providing a similar service at a lower cost to customers. To continue favorable operations, Deutsche Bahn must exploit all opportunities and overcome threats. In order to expand effectively, Deutsche Bahn must utilize a strategy in order to gain customers. The various strategy options are discussed below. A Low Cost Alternative: Provide a program to make Passenger Transport more affordable.
Here, DB Bahn Urban would be the main business unit to use this strategy, but all would benefit from an increase in the number of passengers. In particular, schoolchildren would now have an incentive to use the regularly scheduled service, and the number of passengers would increase accordingly. Differentiation: Begin providing transport service with modern vehicles in all business units. DB would be easily recognizable and viewed as a modern company.
This investment would ensure customers that the service is premium, and make for a more pleasant ravel experience on all of the travel lines. Although this would take time to implement, this strategy would provide long-term benefits which is important since Deutsche Bahn is always looking to expand operations. Customized Solution: Through partnerships provide customers with the ability to fulfill all travel needs. With this offering a traveler will be able to purchase airline tickets, train tickets, secure a car rental and hotel stay all through Deutsche Bahn.
Passengers have the bility to purchase all of these services online, but have to make the reservations through different providers. Making this stressful process of planning a trip easier and quicker would be a solution customers would immediately use. Recommendation Since Deutsche Bahn participates in a highly competitive industry, strategy is important in maintaining that competitive advantage. The economic situation is unlikely to recover quickly, and so Deutsche Bahn should look to establish a solid